22. What is a balanced score card?
The balanced score card is a performance management tool that is used at NationWide to guide, measure, monitor and reward the performance of each and every employee in the organisation (including the CEO). It is designed to keep track of the objectives assigned for each employee and measure their achievements against these objectives. It is also used to align their activities to the vision and business strategy of the company, to improve external and internal communication and to monitor performances against the strategic goals. The balanced score card for each employee comprises:
- A set of goals or objectives specific to him/her to be achieved in a requisite period of time (examples - master the art of breaking bad news to a patient, devise a protocol to be followed for avoiding poly pharmacy dosing, etc.)
- The corresponding set of activities that he/she needs to do to achieve above objectives (examples - attending a requisite number of communication skill internal workshops, doing a self-audit of all prescriptions made for a specific set of patients, etc.)
- Metrics to measure how the activities have been executed within a set timeline
- Scoring system based on the above metrics to measure their achievements
The balanced score card is reviewed every 6 months for each employee and the score achieved at the end of each 6-month period is used to determine the individual variable pay rewards handed out to them.